How much does Netflix spend on postage for each DVD shipped?

My answer on Quora

44 cents
Netflix pays this amount to avoid the automated letter processing for DVD return mailers.  It seems quite low but there are a few reasons for this:

1- Netflix sleeves are bright red so that Mr.Postman can easily discern the product.
2- Square sleeve…again easily discernible.
3- Netflix has 58 shipping locations which reduces shipping distance.
4- Netflix utilizes Permit Reply mail where return postage is prepaid
and the postage due assessment step is not required (as opposed to
Business Reply Mail).
5- Netflix ships so many DVD that the sorting of its mailers and other mail can happen further upstream…bulk process management.


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